Written questions by Francois.

What steps his Department is taking to support small and medium-sized enterprises in the defence sector with (a) high costs and (b) limited access to suitable facilities for (i) developing and (ii) testing new technologies.

Small and Medium-Sized Enterprises (SMEs) are a vital part of the UK defence supply base, contributing to growth through high-skilled jobs and dual use technology. We are supporting their competitiveness through investment from the National Security Strategic Investment Fund and by improving access to defence supply chains through a new SME hub, which will set direct SME spending targets for the Ministry of Defence by June this year. Our new UK Defence Innovation Organisation will further support defence SMEs to take state-of-the-art technology from the drawing board to the production line, and into the hands of our Armed Forces.

Whether he had discussions with Cabinet colleagues prior to the decision not to contest a compensation payment to the band Kneecap following their exclusion from the Music Export Growth Scheme.

There were no discussions with Cabinet colleagues prior to the decision by the Secretary of State for Business and Trade not to contest the claim brought by Kneecap for review of the decision not to award them a grant under the Music Export Growth Scheme.

Whether the Minister for Trade Policy and Economic Security held discussions on (a) UK-China trade relations, (b) economic security and (c) any (i) existing and (ii) proposed commercial agreements during his recent visit to China; and whether he plans to publish a summary of the Minister's discussions.

During my visit to China, I held frank and honest discussions with my counterparts on the opportunities and challenges in the bilateral trade relationship, including improving overall reciprocity in market access, raising UK concerns on level playing field issues and market distorting practices and discussing economic security issues. I am unable to comment on commercial discussions during the visit, for reasons of commercial sensitivity.

With reference to his Department's guidance entitled Request for input on potential UK measures in response to US tariff, whether (a) lethal and (b) non-lethal police firearms are classified as military weapons under CN8 code 93039000 for the purposes of that consultation.

We encourage responses to the request for input from all organisations that think their imports could be affected by any potential UK tariffs on a particular commodity code.Lethal and non-lethal firearms under CN 93039000 are not classified as military weapons. Heading 9303 does not mention military weapons, military weapons are instead classified in the earlier headings, such as 9301 (9301 Military weapons, other than revolvers, pistols and the arms of heading 9307 (this heading covers semi-automatic firearms and rifles).Organisations that have additional specific classification enquiries can be directed to the mailbox: classification.enquiries@hmrc.gov.uk

Whether the Minister for Trade Policy and Economic Security had discussions with his international counterpart on (a) the detention of Jimmy Lai and (b) human rights abuses during his recent visit to China.

During my recent visit to China and Hong Kong, I raised the UK’s concerns over human rights abuses, including in Xinjiang and the detention of Jimmy Lai with counterparts at the Ministry of Commerce and the government of the Hong Kong Special Administrative Region.

Pursuant to the Answer of 7 February 2025 to Question 27123 on Defence: Financial Services, how many stakeholders his Department has met with since the meeting of 12 December 2024; what issues were identified as requiring action; and what steps he is taking to prevent unintended consequences.

As referred to in my answer of 7 February, I recognise the challenges for both industries in addressing this issue. Since the meeting of 12 December, my officials have been in discussions with counterparts in HMT and MOD, including Defence Equipment & Support, and have also written to each of the roundtable participants asking for their thoughts and ideas on where the issues lie and how to resolve them. The request was for responses by 14 February, and we are developing a plan to address the issues raised.

If he will make an assessment of the potential impact of environmental, social, and governance criteria on the financing of (a) small and medium-sized enterprises and (b) other defence companies.

The Secretary of State for Business and Trade met representatives of the defence and financial services industries on 12 December 2024, to discuss how environmental, social and governance (ESG) principles are being applied to companies in defence and the impact they are having on investment and access to financial services. The discussion highlighted that there are multiple stakeholders and issues within the sectors and within government. The Department is now following up on that discussion across government and wider to find the best way to address them, to ensure that ESG policies do not have unintended consequences for the health of the defence sector.

Whether he has had discussions financial institutions on the potential impact of environmental, social and governance policies on the provision of banking services to defence (a) manufacturers and (b) suppliers; and what steps he is taking to ensure that legally operating defence firms have full access to financial services.

The Secretary of State for Business and Trade met representatives of the defence and financial services industries on 12 December 2024, to discuss how environmental, social and governance (ESG) principles are being applied to companies in defence and the impact they are having on investment and access to financial services. The discussion highlighted that there are multiple stakeholders and issues within the sectors and within government. The Department is now following up on that discussion across government and wider to find the best way to address them, to ensure that ESG policies do not have unintended consequences for the health of the defence sector.

If he will introduce financial (a) incentives and (b) guarantees to encourage (i) banks and (ii) investment firms to support the defence sector; and what assessment he has made of the potential impact of restricted access to capital on the UK’s defence (A) industrial base and (B) procurement strategy.

The Secretary of State for Business and Trade met representatives of the defence and financial services industries on 12 December 2024, to discuss how environmental, social and governance (ESG) principles are being applied to companies in defence and the impact they are having on investment and access to financial services. The discussion highlighted that there are multiple stakeholders and issues within the sectors and within government. The Department is now following up on that discussion across government and wider to find the best way to address them, to ensure that ESG policies do not have unintended consequences for the health of the defence sector.

If he will take steps to (a) encourage (i) banks and (ii) investors to provide financial (A) services and (B) investment to defence firms and (b) monitor the effectiveness of such steps.

The Secretary of State for Business and Trade met representatives of the defence and financial services industries on 12 December 2024, to discuss how environmental, social and governance (ESG) principles are being applied to companies in defence and the impact they are having on investment and access to financial services. The discussion highlighted that there are multiple stakeholders and issues within the sectors and within government. The Department is now following up on that discussion across government and wider to find the best way to address them, to ensure that ESG policies do not have unintended consequences for the health of the defence sector.